Sweden cuts interest rate to zero

The Swedish central bank has cut its key interest rate to 0%, saying the economy is “relatively strong” but inflation is too low.

The Riksbank lowered the key interest rate by 0.25 percentage points because it said the country’s monetary policy needs to be “even more expansionary” to achieve the bank’s target of two per cent inflation.

The bank said the interest rate needs to remain at 0% until inflation picks up, and did not foresee raising the rate until mid-2016.